Funeral homes take hit with arrangements in downturn

Published: January 4, 2009 4:00 AM

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MILLERSBURG -- Nothing is inevitable but sickness, death and taxes, even in a recession.

While automakers look at closing plants, professionals in the fields of health care, funeral planning and tax services see the effect of America's economic downturn on a much smaller scale.

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"I don't want to say it has not hurt funerals. It has," said Clifford A. Greene, licensed funeral director and owner of McIntire, Davis and Greene Funeral Home in Wooster. "People make choices based on economics today, more than their heartfelt feelings. Today, they may have to make some tough decisions."

The industry doesn't suffer from a lack of business, though. According to the National Funeral Directors Association, as the baby boomers age, the U.S. death rate will increase to 9.3 people per 1,000 by 2020 and 10.9 people per 1,000 in 2040.

The price tag on a funeral continues to increase. According to a 2006 survey by the NFDA, the average cost of a funeral in 2006 was $6,195, not including a vault. If the cemetery requires a vault, the cost increases to $7,323.

Paying more than $7,000 for a funeral in a recession is unrealistic for many.

"Certainly, if people don't have money to spend for food, they certainly don't have money to spend for funerals," Greene said. "So, even though people die, people are more selective about funerals today."

When finances are difficult, living relatives may have to limit visitation and viewings or hold graveside funerals. Cremation is another way people are looking to make funerals more affordable, said Samuel A. Glenn, licensed funeral director and owner of Custer-Glenn Funeral Home, Wooster.

"We've seen somewhat of a spike in our cremations rate just in the past couple of months," Glenn said. "We tell people ... you don't have to spend a lot on it to make it meaningful. People really appreciate that."

Accubilt, a company that produces three brands of hearses, reported sales dropped of 50 percent in the fall.

At Custer-Glenn, economic pressures have changed the focus of the industry, making green funeral options more and more popular, Glenn said.

"I've had probably a half dozen people this past week that came in and they wanted to know about the green burials because they found out they were less expensive than traditional burials," he said.

The land used for a green burial is the largest expense. Overall, the burial cost is less, because there is no embalming and minimal use of shrouds or caskets.

"I think all in all, this business is recession-proof to some degree," Glenn said.

As for sickness, America isn't any healthier.

According to the Centers for Medicare and Medicaid Services, health care spending will double by 2017, eventually consuming almost 20 percent of the country's gross domestic product. In 2006, health care spending was, for the first time, more than $2.1 trillion.

As the baby boomers age, the amount spent on health care in the country is expected to grow almost 7 percent before 2017.

David Rhoad, marketing and public relations manager for Wooster Community Hospital, said people might be delaying when they see a health care professional as long as possible.

"People may be putting off procedures," he said. "They may not be going to the hospital as soon as usual. We feel it a little bit, too."

The tax service agencies haven't seen a slow down. In fact, it's quite the opposite.

Sue Ann Fouche, a former Wayne County auditor who has offered tax services for more than 39 years, said she is "really, really busy." She is getting calls from people who want to know what to do with their retirement or their stocks.

Fouche said she has never seen business like this.

"I know a lot of people want to get the money back fast, so a lot of people will be in a lot sooner than in the past," she said.

This might also be the year people who have previously filed their own tax returns, seek professional help.

"I've never seen it with as many law changes like this," Fouche said.

Several tax laws have expired and been renewed or have been renewed with slight changes. Fouche has been working to stay up to date and recommends most people seek professional tax help this year.

"There's a lot of things you could miss and miss a good deduction," she said.

Reporter Katy Ganz can be reached at 330-674-1811 or e-mail kganz@the-daily-record.com.